PNB Q4 FY25 Results: Net Profit Soars 51% to ₹4,550 Crore; NII Up 11%

PNB Q4 FY25 Results: Net Profit Soars 51% to ₹4,550 Crore; NII Up 11%

Punjab National Bank (PNB), one of India's leading public sector banks, has reported a robust financial performance for the fourth quarter of the fiscal year 2024-25. The bank's net profit surged by 51% year-on-year (YoY) to ₹4,550 crore, driven by strong growth in Net Interest Income (NII) and improved asset quality. (mint)

Key Financial Highlights

• Net Profit: ₹4,550 crore, up 51% YoY from ₹3,010 crore in Q4 FY24.

• Net Interest Income (NII): ₹11,500 crore, an 11% increase from ₹10,360 crore in the same quarter last year.

• Loan Growth: 16.8% YoY, with total advances reaching ₹10,91,400 crore.

• Deposit Growth: 14.2% YoY, totaling ₹15,64,200 crore.

• Asset Quality: Improved, with gross and net NPA levels showing marginal decline. (mint, Goodreturns)

Operational Performance

PNB's operational metrics indicate a stable and growing banking business:

• Margins and Operating Expenses: Margins remained stable, and operating expenses were broadly contained.

• Credit Cost: Remained contained, contributing to the overall profitability.

• Asset Quality: Continued improvement, reflecting prudent risk management practices.

Dividend and Fundraising Plans

In addition to the strong quarterly performance, PNB's Board of Directors is considering a dividend payout and potential fundraising initiatives. These decisions are expected to be finalized in the upcoming board meeting scheduled for May 7, 2025. (ET Now)

Market Reaction

Ahead of the earnings announcement, PNB's share price experienced a positive movement, gaining over 2% and reaching an intraday high of ₹96.90 on the BSE. This uptick reflects investor confidence in the bank's financial health and future prospects. (mint)

Analyst Insights

Financial analysts have expressed optimism regarding PNB's performance, highlighting the bank's ability to maintain stable margins and improve asset quality. The consistent growth in NII and net profit positions PNB favorably in the competitive banking sector.(mint)

Outlook

Looking ahead, PNB aims to sustain its growth trajectory by focusing on enhancing operational efficiency, expanding its loan and deposit base, and maintaining asset quality. The bank's strategic initiatives, including potential fundraising and dividend distribution, are expected to further strengthen its financial position.